International researchers may receive funding in different forms. This can include:
-scholarships;
-studentships;
-fellowships;
-research grants;
-stipends;
-salary or wages; and
-payments for consultancy or other services.
The name of a payment does not, by itself, determine its tax treatment.
Scholarships
Some scholarships can be exempt from Income Tax. HMRC provides specific guidance on the circumstances in which scholarship income is exempt. However, payments connected with employment or payments that are actually remuneration for services can be treated differently. For this reason, do not assume that a payment is tax-free simply because it is described as a scholarship.
Fellowships
The tax treatment of a fellowship depends on the nature of the award and the circumstances in which it is provided. A fellowship should not automatically be described as either taxable or tax-free. If you are receiving a fellowship, check the terms of the award and ask the organisation providing the funding how the payment is treated for tax purposes.
Research grants
Research grants can also have different tax treatment depending on what the payment is for and how it is structured. For example, funding provided to support research may be treated differently from a payment made to an individual in return for providing services.
Employment income
If you are employed by a university, research organisation or company, payments made under your employment are normally treated as employment income and are generally subject to PAYE and National Insurance, subject to the relevant rules. Your employer should normally explain how your salary is taxed.
Overseas funding
If your research funding comes from another country, you may need to consider both the tax rules of that country and UK tax rules. Your UK tax residence and any applicable double taxation agreement may be relevant.
What should I do if I am unsure?
Ask your university, employer or funding organisation:
-what type of payment you are receiving;
-whether it is treated as employment income;
-whether tax is deducted before payment; and
-whether they provide any tax documentation.
If your circumstances are complex, consider obtaining professional tax advice.
This information is a general guide and is not a substitute for professional tax advice.
Last reviewed: [October 2026]